Human Resource Planning Features & Limitations

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Uncertainties – Labour turnover, labour absenteeism seasonal employment, technological changes and other environmental changes are uncertainties which serve as constraints to HRP. Non-involvement of operating managers makes Human Resource Planning ineffective. Data collection, analysis of planning and plans themselves must be continuously revised and improved. HR information is often incompatible with other information used in strategy formulation. HR Practitioners are perceived as experts in handling personnel matters but not experts in managing business. Therefore their plans when enmeshed with original plans may prove to be defective.

  1. On the other hand understaffing loses the business economies of scale and specialization, orders, profits and most importantly the customers.
  2. If you are looking for steps in human resource planning, then forecast the future needs of human assets.
  3. Human Resource Planning is an activity that is based on forecasts and estimates.
  4. (viii) They should evaluate the procurement, promotion, and retention of the effective human resources.
  5. For this, the management has to fore-cast the supply of human resources.

When a company has more than one position, it becomes necessary to find and maintain an adequate amount of quality employees. HR planning refers to the process of matching the right employee for a given job, without staffing too few or too many people. This takes a great deal of planning and foresight to successfully achieve. Human resource planning (HRP) allows a business to better maintain and target the right kind of talent to employ—having the right technical and soft skills to optimize their function within the company.

Human Resources plans also help in designing basic pay profiles, incentive schemes, and promotions for employees. Human Resources Plans also enable periodic review of the compensation policies in accordance with the trends in the present situation. Employees of an organization is a valuable asset as they are the ones who work towards achieving the goals of the organization. Many times, the organization is not able to utilize the human resources available to their full potential. Through Human Resource Planning, the management is able to constantly assess the potential of the human resources.

Another aspect that needs to be considered is the extent of illiteracy and the slow pace of development of skilled categories which accounts for low productivity in the labour force. Low productivity in turn has implications for manpower planning. A strategic plan is set for achieving the long term goals or objectives of the organization. At the time of formulation of strategy the used information is basically long term oriented. But the human resource planning is formulated using the short term information.

Strengthening Employee Recognition to Build a Culture of Grati…

HR training is an powerful integer in all businesses sector method, nevertheless companies don’t decide the impact of hr training programmes more than the staff. HR training is helpful only if it produces desired outcome. In spite of its benefit of keeping the organization’s manpower position balanced, there are a few limitations of Human Resource Planning, which are discussed below. Forecast Supply – Helps us to understand the talent that we already have and become familiar with the talent we need (forecasting workforce supply).

A Better View to the business decision

However, many of the employers in India today do not have faith in adopting manpower planning as a strategy to achieve corporate objectives. Many big business houses are gradually adopting more and more scientific techniques and using human resources with as much care as they give to physical and financial resources. Before starting the human resource planning process the support and commitment of top management should be ensured. Moreover the exercise should be carried out within the limits of a budget. In most of the Indian organisations, human resource information system (HRIS) has not been fully developed. In the absence of reliable data it may not be possible to develop effective human resource plans.

Objectives of Human Resource Planning – Objective & Scope of Human Resource Planning

Select the right number of people required with the appropriate skills, competencies, knowledge and expertise. (viii) To formulate channels of promotion and transfer by ascertaining the utilization of manpower and the placement and development of the right skill at the right place. (v) To make contingent plans to handle sudden requirements and situations of shortfall. (vi) They should conduct research to determine factors hampering the contribution of the individuals and groups to the organization with a view to modifying or removing these handicaps.

The penalties for not being correctly staffed are costly to any organization in today’s business context. On the other hand understaffing loses the business economies of scale and specialization, orders, profits and most importantly the customers. Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. Designing effective motivational programmes for constantly increasing the morale of the employees.

However, your company’s human resources need to be fostered and cultivated if they are to bring your business the greatest possible advantage. The Human Resource Planning is concerned with maintaining and recruiting the human resources with the requisite quantity and the quality, to fulfill the demand and supply arising in the near future. Organization needs different kinds/grades of people to meet the challenges arising out of the changing situation. HRP identifies the sources of human resources skill-wise and informs the top management to utilize the sources as per needs of the organization.

Besides, various functional and departmental heads periodically furnish information to the HR department about their human resource requirements. The HR department coordinates the above information and prepares the human resource plan. (iv) They should develop measures of human resource utilization as components of forecasts of human resource requirements along with independent validation. In effect, the primary aim of manpower planning revolves around attempts at “matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangements”. To anticipate the impact of technology on jobs and human resources. The term HR planning has gained popularity and is also used by academicians and people from orga­nizations all over the world.

V. When an organization makes sure to identify who, where, and when people are needed and such people are placed on those positions, productivity becomes a possibility. Create a scientific base for introducing human resource develop­ment efforts for improving the quality of work life. Continuous monitoring of performance and effectiveness of the existing manpower, and making efforts for its improvement. (xvi) To provide basis for organizational development programmes. (xiii) To ensure optimum use of existing human resource.

A good plan allows your organization to anticipate turnover and future staffing needs, adapt to change, and to grow, among other things. Hard HRP evaluates various quantitative metrics to ensure that the right number of the right sort of people are available when needed by the company. Soft HRP focuses more on finding employees with the right corporate culture, motivation, and attitude. Investing in HRP is one of the most important decisions a company can make. After all, a company is only as good as its employees, and a high level of employee engagement can be essential for a company’s success.

Training and education can make your staff more effective in some areas, but they can’t be substitutes for resourcefulness and adaptability. Make sure they are appropriate for the resources you are able to invest and the effort your employees can be expected to make relative to their job descriptions. If you pay minimum wage, it is unreasonable to expect your staff to practice or read on their own time.

Due to this, there exists a problem of an identity crisis. HR planning cannot be effective until the experts have a clear understanding of objectives. This is the stage where the human resource plan is developed so that it can fill the existing gaps. If you are looking for steps in human resource planning, then pay attention to the human resource sourcing strategy. HRP provides data / information with regard to the people who are potential and need training as also the people who lack competencies for performance of present job / future job.

It is concerned with bringing the forecast of future demand and supply of HR. All human resource management activities start with human resource planning. So we can say that human resource planning is the primary activity of human resource limitations of hrp management. With future workforce needs to be considered, human resource planning must analyze the competency of the present workforce. Comparing future needs with current workforce strengths and abilities will identify gaps or surpluses.

Answering these questions will help to identify the gap so that you can fill it later on. An effective manpower planning brings several advantages to an organization. Because of manpower planning, shortages of manpower and at times surpluses of manpower can be spotted and necessary adjustments can be made. When such problems are identified, prompt remedial actions can be taken.

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